The Supreme Court has directed the Delhi Development Authority (DDA) to refund ₹164.91 crore to Reliance Eminent Trading and Commercial Pvt. Ltd., holding that the authority could not retain the bid amount after the underlying land acquisition lapsed.
A Bench of Justice J.K. Maheshwari and Justice Atul S. Chandurkar allowed the appeal and granted summary judgment under Order XIII-A of the Code of Civil Procedure, setting aside the Delhi High Court’s refusal to decide the matter without trial.
The dispute arose from a 2007 auction where the appellant purchased a commercial plot in Jasola after paying the entire consideration. However, subsequent proceedings initiated by the original landowner led to a declaration that the land acquisition had lapsed under Section 24(2) of the 2013 land acquisition law. Despite being granted time, DDA failed to initiate fresh acquisition proceedings.
Rejecting DDA’s objections, the Court held that defences relating to possession, limitation and non-joinder were “fanciful” and raised no real triable issues. It clarified that once acquisition lapses, the auction transaction loses its legal foundation, entitling the purchaser to restitution.
The Court further held that refund is not contingent upon return of possession, noting that title reverts to the original landowner upon lapse of acquisition. Permitting DDA to retain the consideration, it observed, would amount to unjust enrichment.
Importantly, the Court recorded that the appellant had given up claims relating to stamp duty and property tax, and therefore confined relief to refund of the principal consideration amount.
Exercising powers under Article 142, the Court set aside the conveyance deed and directed refund of ₹164.91 crore with interest at 7.5% per annum from July 12, 2007 till realisation. It also permitted the appellant to withdraw ₹186 crore already deposited by DDA, directing that the balance be paid within eight weeks, failing which it would carry interest at the prevailing RBI lending rate.
Appearances :
For Petitioner(s) : Mr. Shyam Divan, Sr. Adv.; Mr. K. R. Sasiprabhu, AOR; Mr. Ashwin M Dave, Adv.; Mr. Shubhranshu Padhi, Adv.; Mr. Vishnu Sharma A S, Adv.; Ms. Vidhatri, Adv.; Mr. Arpit Jacob Varaprasad, Adv.
For Respondent(s) : Mr. Kailash Vasdev, Sr. Adv.; Mr. Shashi Pratap Singh, Adv.; Mr. Nitin Mishra, AOR; Mr. Umrao Singh Rawat, Adv
